Bank of England and Financial Services Act 2016

Overview of the Act

Reproduced verbatim from the Explanatory Notes published with the Act on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). Explanatory Notes are prepared by the responsible government department and are not part of the Act.

The Bank of England and Financial Services Act 2016 amends governance and accountability arrangements at the Bank of England ("the Bank"), makes provision in relation to the Prudential Regulation Authority ("PRA") and the Financial Conduct Authority ("FCA"), expands the scope of and make changes to the Senior Managers and Certification Regime, makes provision for the enforceability of credit agreements, makes provision in relation to funding the teams that take action against illegal money lending, makes provision concerning the transposition of Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing ("the Directive"), and for the FCA to issue guidance in relation to the definition of ‘politically exposed persons’, requires the FCA to make rules preventing specified charges being imposed on members of pension schemes who wish to take their benefits before their retirement date, gives the Treasury power to make regulations in relation to transformer vehicles, permits the extension of the Government's Pension Wise service, makes provision about the Bank sharing information with the Treasury about resolution planning, and allows for some flexibility to change which legal entities are authorised to issue commercial banknotes in Scotland and Northern Ireland.